Fashion chain Superdry wants to delist from the London Stock Exchange

Superdry Plc plans to delist from the London Stock Exchange as the British clothing company, owner of the Superdry brand, struggles and undergoes a restructuring aimed at keeping it afloat, Bloomberg reports.

The Superdry chain, which rose in popularity in the 2000s, has announced that delisting, raising more funds and implementing a program to reduce UK store rents and payments owed to local authorities will help it revive its core business. Shares in Superdry have fallen by around 90% in the past 12 months.

The retailer wants to raise up to 10 million pounds ($12.4 million) in a capital increase as part of its rescue plan and lower rents at 39 of its UK stores.

Lenders Hilco Capital Ltd. and Bantry Bay Capital have agreed to the restructuring plan, which will put the business "in the right position to secure its long-term future after a period of unprecedented challenges," the founder and chief executive said of the company, Julian Dunkerton.

Superdry has warned that if its proposal, which does not affect suppliers or owners outside the UK, is unsuccessful, then insolvency proceedings will be considered.

The retailer suffered mounting losses due to falling sales. Superdry has more than 3,000 employees worldwide, working in 200 brick-and-mortar stores and 350 franchised and licensed units. No stores in the UK are set to close, but if landlords do not accept rent cuts, closures are a possibility.

Dunkerton, who co-founded Superdry in 2003 and is a 26% shareholder in the company, has been trying to take over the struggling brand. Dunkerton held discussions with potential financing providers about buying the remaining shares, but ultimately abandoned the plan, according to a filing earlier this month.

The company announced last week that it was exploring two possible options to raise capital: Dunkerton would either subscribe to an open offer to raise up to 8 million euros ($8.5 million) or be the sole participant in a placement of 10 million pounds.

Dunkerton returned to the company's helm in 2019, promising to turn around sales and profits, but has failed to do so, in part due to changing consumer trends and the pandemic.